The Ethereum network’s impressive growth has given rise to a thriving DeFi landscape. Specifically, the network’s transition to proof-of-stake has drawn the attention of institutional investors across the globe.
Ethereum staking allows anyone to participate in securing the network to earn rewards for their contribution by staking ETH, including institutions. Ethereum staking for institutional investors is a relatively low risk approach to earning yield on ETH, opening up opportunities for institutional exposure.
With more than $100 billion in ETH staked at present, institutional investors are rushing to take advantage of these opportunities. Let's delve into how institutions are gaining exposure to Ethereum staking, and the best institutional ETH staking providers to use.
Institutional staking on Ethereum has gained momentum in recent months. April’s Shanghai upgrade enabled ETH staking withdrawals for the first time, making staking far more attractive for asset managers.
Regulatory uncertainty has been another key factor deterring institutional investors. However, policymakers made major strides in this regard in 2025. With a Trump administration being favorable towards crypto, market conditions are looking ahead to a more clear regulatory landscape.
Ethereum’s proof-of-stake (PoS) consensus went live in 2022, replacing the existing proof-of-work (PoW) design for validating transactions.
Under proof of work, miners would compete to solve complex algorithms to confirm new transaction blocks. Miners would then receive ETH rewards for their efforts. This approach was highly exclusive and consumed massive amounts of energy.
In contrast, proof of stake is a far more lightweight design. Anyone can stake ETH to validator nodes, which confirm new blocks. As a result, network participation is far more inclusive. Proof of stake also reduced Ethereum’s energy consumption while providing the foundation for further scaling.
ETH staking rewards are a big attraction for institutions. Depending on the staking platforms they choose, participants can earn 3-5% APY for their efforts.
These rewards are derived from three main sources: transaction fees, block rewards, and slashing. A part of the network's transaction fees is given as rewards to stakers. Validators also earn block rewards for creating and checking new transaction blocks.
Slashing is a bit more complex. If validators break rules, they get "slashed" and lose some of their ETH. This lost ETH is then shared among the other stakers. However, slashing can be avoided by staking with a reputable protocol, such as Origin Ether.
Running validator nodes can give bigger rewards. This might be too hard for individuals because of the high amount of ETH needed. But it is a good option for institutional investment.
While custodial staking options exist, this choice adds additional risk for firms. Should an exchange fail, firms may risk losing their investments.
Institutional investors choosing a staking provider should instead use Metamask Institutional to connect with their exchanges’ custodians or staking service providers like those listed below. If you’re comfortable using multiple institutional ETH staking providers, then leveraging more than one of these protocols simultaneously is also an option.
Users retain full capital control with Origin Ether, which can be used across DeFi. Its integration with Fireblocks makes OETH accessible to institutions as well as retail investors. OETH deploys its ETH reserves to Ethereum’s beacon chain to generate yield for users. Yield is then distributed to OETH holders, saving stakers time and gas costs.
OETH’s strategies target higher yield than traditional staking and LSTs. As a result, stakers often enjoy outsized APYs above 4% even in a volatile market.
Discover how OETH can maximize your firm’s staking returns here. Or email [email protected] to set up a call about how your firm can use OETH.
Headquartered in the United States, Allnodes is a leading non-custodial staking service provider. Allnodes provides an easy gateway for both retail and institutional clients looking to run validator nodes.
The platform provides staking services for many digital assets. It has more than $2B in AUM. The site currently offers 2.7% APR for stakers, plus a 0.4% MEV boost.
Kiln is a versatile staking service provider with a focus on enterprise-grade security. Users looking for institutional ETH staking can stake their ETH to Kiln’s pool of more than 18,000 validators to earn 3 - 4% APRs.
For institutions seeking to supercharge their ETH staking yields, Super OETH offers an advanced solution with unmatched earning potential. As a next-generation liquid staking token (LST), Super OETH combines staking rewards with on-chain, auto-compounded incentives to deliver exceptional returns.
With a trailing 7-day APY above 5%, Super OETH stands out as a superior option for firms aiming to maximize yield without taking on excessive risk.
What sets Super OETH apart is its deep liquidity and robust peg to ETH, maintained through concentrated liquidity pools on Base’s Aerodrome platform. Super OETH also simplifies staking. It automatically compounds rewards directly into users’ wallets, saving significant time and gas fees.
Super OETH’s design is particularly well-suited for institutions that value security and transparency. The protocol is built on Origin Protocol’s battle-tested codebase and has undergone rigorous auditing to ensure reliability.
Learn more about how Super OETH can elevate your firm’s staking strategy or contact [email protected] to explore solutions tailored to ETH staking for institutions.
Institutions can stake ETH by running their own Ethereum validator nodes or by using a service provider. However, regulatory compliance is important to make sure staking follows all laws and rules, keeping investments safe. It may also be worth investing in a research service, such as Blockworks Research, before getting started.
Using Origin Ether, Super OETH, or other liquid staking tokens helps you earn higher yields on holding ETH than traditional methods of Ethereum staking for institutions.
Smart contracts help automate staking and ensure that everything runs smoothly and securely. They also add an extra layer of risk management.
